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On the Move With Rishaad Salamat





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Qantas 24, Us 20, U.s. 16, Australia 13, Thailand 11, India 11, Hong Kong 8, Singapore 8, Bangkok 8, S&p 5, Yingluck Shinawatra 4, Imf 4, Nelson Mandela 4, New Zealand 4, Tokyo 4, Virgin Australia 4, Shinawatra 3, South Korea 3, Yingluck 3, Sri Lanka 3,
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  Bloomberg    On the Move With Rishaad Salamat    News/Business.  

    December 8, 2013
    8:00 - 10:01pm EST  

>> good morning. i am rishaad salamat and we are "on the move there, -- "on the move." japan leading asia's equity markets, the nikkei to 25 up nearly two percent. handing china its biggest trade surplus in years. one last push to topple yingluck as the thai opposition quits parliament. let's have a look at what is happening with equity markets. singapore just about to start off its trading week.
it is about japan once again. >> certainly is. not its credit plan -- one on one percent on forecast for the third quarter. the yen is at 103, that is the reason why you are seeing dramatic gains from exporters today. goldman sachs also help that. new zealand and australia marginally lower. japan is the one to watch right now. are -- i mentioned before yahoo! japan. a buy from goldman sachs helps that. .p by 8.2%, upgrading goldman really backing yahoo! japan.
you have these also rising as well. in australia, we have qantas falling once again. to junk lastrade week after the last forecast. virgin australia falling with that. singapore airlines is marginally up. unemployment rates falling to seven percent and china, exports beating forecasts. good.igures, japan not so >> thanks, john. bought more europeans bought a lot more. >> good morning, we are talking
33 point $8 million for the month of november. if you take a look at the exports, europe beating analyst estimates, rising from a year earlier. imports rising less than china did5.3%, but import a lot more iron ore. they are the world's largest consumer of iron ore that is used mainly to produce steel. assaw that at a record traders were punishing existing stockpiles. analysts are pretty happy with the export figure, not so happy with the import figure. they say it shows that global activity is picking up but imports show softer domestic demand. bottom line is this, this does pave the way for the chinese government to re-examine its focus on internal and domestic consumption. they got the export part of the equation correct. can they work on the imports? can they rely less on that export -- what the u.s., south
korea and european economies consume and really rely on getting that consumer to spend more and consume more? numbers. get inflation >> that is due in at just 30 minutes from now. we are expecting cpi rising 3.1% for the month of november. that is falling from the month of october. take a look at pbi as well. >> continually falling. >> negative one point five percent is the estimate in my with what you saw in october. consistentlync. -- in that 1.5% range. >> thanks all for that. stay with china because it has been reported that an additional 5 wall st firms are under investigation for hiring practices. new york times saying regulators have widened their inquiry as to whether jpmorgan broke anti-
bribery laws. last month the bank and it plans to manage china everbright ipo amid scrutiny. the wto celebrity a landmark deal that could add $1 trillion to the global economy. subsidies on food dropping opposition to a deal. president obama praised the agreement which is a first in the 18 year history of the wto. analysts say it will do more to salvage talks then food shortages and help global commerce. to basically out get an agreement among all of us since 2001 or even earlier in 1995. we have not been able to get an agreement. that is the first part of the significance. ,he second is that the package even though it is small but ambitious in the sense that it basically delivers on parts of
economies and the agreement that was reached, i think will set a very good traction for the purpose of moving ahead on development. this is not so bad. >> we are also waiting for official results from india's state elections. the opposition has be seen at the big winner. beginnal state will counting today. paul's point to the national vote which must be held by may. let's have a look at the prospects of the trading week over there and what happened on friday as well. it was higher by about 0.3%. we could be building on that. a group of investors is said to be considering a bid for the qantas fleet. that would offer the struggling
carrier a cash lifeline. let's find out more. is this proposal exactly? i am assuming it is going to be -- >> exactly. these are fairly common transactions in the airline industry. qantas already has a fair amount of its fleet sold, about 2.9 billion according to its latest reports. there is another 7.2 billion there. wooleyoup led by greg has been involved with qantas for a while. been in globally aviation asset management. he was involved with some of the group who was launching the 2007 takeover of qantas. .e has proposed to come forward that would offer qantas a good bit of cash upfront which is going to be helpful after their credit rating was cut to junk i s&p last week.
the problem would be their leasing cost would rise as well. you give with one hand and take away with the other. >> we knew that the airline had problems here, but this news we had last week highlights -- what went wrong so quickly for qantas? >> exactly. athink it is worth looking the history of competition with virgin australia. virgin australia is the second ranked carrier in australia and it is led by a person who work for qantas before leaving about nine months after the new chief executive in 2009. he has really taken the fight to qantas. there is that old lesson that you shouldn't attack your opponent's weaknesses, you should attack their strengths. qantas had a very strong domestic market. they had a virtual monopoly of
it for nine years. it has made about 450 million of profit a year from that. virgin australia has taken that head on. it has had a fair amount of assistance from its major shareholders. this has been the first to complain about this. several international airlines compete with qantas on an international rate. that has drained qantas's drumstick -- domestic business. >> let's talk about the government here. qantas wants them to help out. is that likely to happen? qantas is something that has been lobbying the government about. they e-mail their staff last month telling them, go to your mps and complain about this. we are not fighting on a level playing field. their complaint is that virgin australia has these international shareholders that
are able to provide a bit more cash for them to continue this fight. qantas isn't allowed to have international shareholders in that way. there is an act dating back to 1992 that says 49% of the airline can be controlled by foreign companies. qantas says they want to level the playing field. the government has said, what does this mean? we want more specifics about this. there was a recent comment towards the end of last week that it is less likely there is going to be much benefit forthcoming. those sorts of talks, it is very hard to know what will come of it, but the prime minister has said, we are not wanting to get into the business of underwriting companies and providing too many guarantees. the labor opposition is very opposed to revising that qantas sale act. i imagine they are still hoping for some support from the government but the opportunities
are looking increasingly narrow. >> thanks for joining us. to south africa. the country is holding a memorial service for nelson mandela in johannesburg tomorrow with at least 200,000 people expected to attend. this is all ahead of sunday's funeral in the village where he grow up. a special program called remembering nelson mandela where his guests give us their memories and anecdotes. whenat was interesting they spoke about him, they rarely talk about his politics. what they talked about was his character as a person and how dominant a physical presence he was. people forget, he loved sports, he loved boxing. he used to practice boxing in his jail cell. he loved to follow the races. by all global sport, followed it closely.
he wanted the guards to update him on various sporting events. you can catch that program right here on bloomberg later today. remembering nelson mandela at 1:00 p.m. and 11:00 p.m. hong kong/singapore time. better-than-expected jobs numbers from the u.s. getting shares a boost. do these gains have legs? we will be trying to get to the bottom of that next on "on the move." ♪
>> quarter past eight in the morning in bangkok. these are live images from the street. this coming of the thai government has urged the opposition to consider a
referendum after thai mps resigned en masse. this is what we have at the moment. yingluck shinawatra offering a referendum as protesters plan what some are saying is a final rally here. the government is willing to consider all options on protest taking place right now. let's get back to the market action. stocks rising for the first time in four days. manfred is senior investment we're getting to 2014 2014, i want to get a view from view -- from you about what you would have been saying about 2013 and what surprised you in the year. things thate many didn't turn out the way we expected. there were a few surprises. i think the one factor that really went the way we expected it to work global equities.
u.s. and european equities, we did expect them to perform strongly and they did. the surprise for us was really in some countries here in asia. asian equities is one example. the equities market has done well despite a risk and roller coaster ride around september. the second surprise was on high- yield credit. we were overweight but our expectation was that we would spend the year it largely clipping coupons. us, that was a positive surprise. a surprise nevertheless. ahead and see what you are going to be looking at for 2014. i think you like japanese equities which surprises me given the 50% run-up to have seen on the nikkei already this year. >> before i get to japanese
equities, the broader theme we are looking at in 2014 is really one of being agile. we believe we might enter the year with more of the same but we believe it will be a year where investors may need to be nimble. japan is a great example of that. equity markets up quite strongly , but think about the policy environment that the bank of japan is committed to. that may yet mean more upside. -- when itlieve comes to japanese equities, we think a trailing approach may make more sense. getting in when the shorter-term policy environment looks attractive and not being afraid to take profits and looking for another opportunity to reenter. 12 monthsee it as a overweight type market. it might be too volatile for that in 2014. , surelyoped markets there should be something on the
other side of that trade. >> a few months into the year, the way we look at it is that the rally this year has been multiple expansion. that has been driven by expectations that growth and earnings will be better down the line. approach theing to point where economic growth and earnings will need to deliver. that is why we may enter the year with a continuation of the rally we would have been witnessing this year. at this point, markets are likely to begin questioning that. when we come to the end of 2014, we might be sitting back and saying the economies did eventually deliver. there are likely those who will doubt it. there are a number of risk events. inhave the fed, the ecb
terms of disinflation risks. we don't think it will be a simple straightforward ride. the first few months might feel like more of the same. >> one of the readthrough as we had, that chinese trade data earlier today tells us that export markets are in demand. people are spending. thatere aeadthrough from , that you switch away from the defensive side of things and play this recovery story through buying cyclical? >> yes. -- global equities, yes, we believe in a cyclical stance. we believe that much of the year in 2014 is likely to be more about cyclicals. in china specifically, there are a number of other risks. we have a neutral view on china
and that stems from the fact that there are places that look attractive but also a lack of catalysts. if you look at exports, let's put these in perspective. they beat expectations. consistente really with a tone that we have seen over the last few months, stability rather than acceleration in growth. what the markets are concerned about are the key risks that may come from the policy reform environment. many of the measures from the third plenum are positive. but they do raise some questions on soe's which ought to be part of the index. attractiveat valuation may be a reason to continue holding some chinese equities. what we are struggling to find is a catalyst to drive those up in a big way. the data may not be sufficient to cause it is really about more stability than anything else. >> great talking to you. we're going to take a break.
coming up, we get you to these images on the streets of bangkok. thailand's opposition party quits parliament. protesters tried to topple the prime minister. this is the scene at the moment as the protesters plan to march tooling you lock -- to yingluck shinawatra -- residents. more coming up. ♪
before things get
underway for the week here in hong kong. shanghai starts off its trading day. whatever look at the futures and how they compare to the premarket which is up by 1%. we are seeing gains. equity markets are being lead higher across the asia-pacific. the japanese rally continues. let's have a look at some of the stories making headlines around the world. we have these images coming out of bangkok where the crisis in thailand escalates. the main opposition resigned en masse protesting what it called the illegitimacy of the government. they claimed parliament is no longer accepted by the party. this comes as antigovernment pushsts prepare a renewed to topple prime minister yingluck shinawatra. they want to elect her with a popular counsel. replace her with a popular counsel. >> any option that government can do under the constitution
and anything that follows by the law, we are willing to work with. our doors are open any time. we hope that one day people will understand the passion from the government. >> south korea is expanding its air defense sewn in the east china sea adding to regional tensions sparked by beijing's similar move last month. the u.s. vice president joe biden discussed the issue when he visited seoul beijing and tokyo last week. north korea has brushed kim jong-un's uncle out of the documentary. camera,e closest to the over the weekend, the shot was tighter. the shot removed him effectively. other footage has been changed to remove the man who was north korea's second-most powerful figure. pyongyang confirms that he has been purged, charged with corruption, drug use and other
antistate acts. thick fog is forecast again today with visibility down to less than 20 meters in places. conditions have been like this for nearly a week printing an orange alert for severe weather. this is china's second-highest weather warning. closurehas caused the of several expressways and left many stranded on the side of the road. we have to take a break but coming up, we are taking a look into abenomics. the japanese prime minister calling for talks with beijing to lower territorial tensions. we go to our exclusive interview with shinzo abe coming up next. ♪
moving higher, taking asian markets with it. the nikkei up i nearly 2% now. china enjoys its biggest trades in two years. we get the latest inflation data and shinzo abe holding talks with china. we have our exclusive interview with the japanese prime minister. without further ado, let's have a look at what is happening with your money right now. japan leading advances across the asia-pacific. it is not clear cut. we have better-than-expected
jobs news out of the u.s. which added to optimism which has carried over in this part of the world. >> it certainly has. 3 thousand, better than forecast for the month of november. that was very encouraging. exportshave the chinese and also chinese trade better than forecast. not so good was gdp from japan having below estimates. but look at the reaction, the yen in fact boosting exports. you have the taiwan markets up by more than 1%. hong kong up by almost 1%. gains are financial. more on that in a minute. there in the china figure, really a strong foundation.
to the opening for china, hong kong so far -- a lot of green. ,asic materials, consumer goods tech stocks rising 3%. what is happening there? computer services rise 2.2%. we look at the details, only one go back to tech equipment. one stock they're clearly rising. lenovo is again seeing gains. if i could also mention other stocks in japan and also australia, they have the week yen really pushing up there. casio, yahoo! japan come a saying itchs and ubs is a top pick for 2014. shares rising 7.5%.
akuma also seeing gains. >> breaking news in china. inflation numbers coming up for november. more benign than had been expected. we have a 3% handle here. economists we are talking to said they would come in about 3.1%. this is slightly lower than the october number at 3.2%. things,roducer side of that shows that prices are not falling quite as much as they were. in october it was 1.5% down. analysts suggest the november number would be the same as that. cpi, 3% at last month. let's get you up to speed with some of the stories which have been making individual corporate headlines. and here areaini the days top company headlines. the virtual currency bitcoin lost 1/5 of its value. that is after china's largest
search engine i do stopped taking the virtual money. the pboc says bitcoin is not a currency with real meaning and "can't enjoy the same legal status." the company that tied up asia's biggest ipo of the year is putting its buying spree on hold. suntory beverage does it will take a break from m&a for 12 months and wants to boost its current businesses to catch up with bigger rival, coke. some tory says its next focus will be on vietnam and indonesia. qantas may be given a lifeline with a group of investors said to be mulling a bid for its planes. it says the consortium has commitments for about $1 billion and may offer a deal. s&p also cut its rating to junk. that is the hour's top company news. i am mia saini. the japanese prime minister
says his door is always open to china. this does, against his backdrop of territorial tensions rising. in an exclusive interview with bloomberg, abe says it is time to reset relations between the two countries. we need each other. we should understand that. we should let one issue control the entire relationship. must have an understanding that would lead to a mutual beneficial relationship is fun, strategic interest. because there are issues, there is a need to have a meeting at the heads of state. i always keep my doors open for a dialogue and hope china would adopt the same stance. that is my hope. least one international publication has depicted you as superman. can you be specific about what is the next step for abenomics? placed this session
as the session we focus on implementation of growth strategies. we have an active industrial competitiveness strengthening laws which address a regulatory reform at a business level and dramatic improvement of profitability and restructuring as well as the motions of startup businesses. regarding the effective corporate tax rates starting next fiscal year, we have decided to reduce by 2.4%. we will be moving forward with reviews and studies as to how corporate tax should be in order for cap -- japanese companies to stay competitive. there is no end to abenomics. the cabinet will approve the related policies on the growth strategy. we will announce the timing of their execution and administer these policies. >> there is a growing number of criticisms saying that abenomics is running out of steam after .oday by state a showed growth james, why was growth revised down?
what is the readthrough for this when it comes to the prime minister's policies? growth was much slower than we expected. it was 1.1% annualized which is lower than the estimate and much lower than the 3.6% we saw last quarter. the two main factors here causing the slowdown were business investment which has stalled and companies drawing down inventories. are going to pick up this quarter and in the next quarter, going until april when the sales tax rises because people are going to be out spending ahead of the increase. really needs to get companies confident that the economy is going to pick up in the long-term so they will increase wages and business spending. that is not really happening at the moment. today's data shows business investment is unchanged and wages are still falling. for the long-term, we are just
not seeing a benefit from abenomics as of yet. >> what was the reason for the unexpected deficit here? are people saying this is likely to go on? >> the current account deficit was larger than expected -- it was expected to be quite small. the real reason was the weaker yen boosting the cost of energy imports and exports of cars and other products not keeping pace with that. japan's trade deficit is continuing. -- current-account deficit people are saying there is not going to be a permanent one but the trade deficit is going to continue for the foreseeable future. some economists have said the import ahead of the sales tax rise -- people are importing
more housing materials and other products because people are expected to by those in the next five or six months. factor another temporary which is causing this deficit. >> thank you, james. down going to be breaking the latest economic data from china. ."ming up next on "on the move ♪
the scene at the moment at the imperial palace in tokyo. we had some weaker than expected growth. 1.9% up.economists say a weaker yen just above the 103 level helping exporters. take a look at what is going on with some of the others, metal
zinc and aluminum on the way down. seng the gains of hang after 11 minutes of the trading day. out a inflation figures short while ago, fairly benign. less thanng up by october's figures would indicate. 2013 is on track to be one of the best years in a decade for u.s. stocks. analysis suggests 2014 may bring higher returns. riverfront investment group sees higher prices next year for u.s. stocks. that is if history is any guide. taking a look at bloomberg start of the day, it shows s&p 500's performance after posting annual gains of more than 20% since world war ii. the index added on average -- this yellow line refers to about 11% or so. it has advanced.
14 out of 17 of those years. what can we glean from this information? riverfront says it is a clear sign that stocks will rise as long as the economy continues to grow. 1981 and't the case in 1990. two years saw the s&p 500 making post your losses. the other was recorded in 1962, a year after the contraction ended. when is the next bear market set to begin? that will occur when the next recession comes. that is what rod smyth says. "there is a very low probability of a contraction in the u.s. or global economies this year. he looks at highly regarding u.s. manufacturing index for clues on the economies relative weakness or even its momentum going forward. looking at the institute for
supply management factor be in next, that rose to 57.3 last month. that was the best performance since april 2011. any reading above 50 signals growth expansion. take a look at how the s&p 500 is performing. we are up some 26% this year. you can look at futures. you are seeing a positive start for the monday trading session in new york when they get back on the floor. there are plenty of variables out there. that includes jobs recovery and the looming budget showdown that is going to start next year on capitol hill. those returns are looking pretty good. four euro global outlook, i am mia saini in hong kong. >> data out of china. thank you very much indeed for joining us. surplus, the trade surplus, that is the highlight of the day showing the exports powering away. >> that was a positive surprise. the export growth picked up
strongly. surplus was just appreciationn that pressure would not go away anytime soon. >> we just got a breaking story coming through from bangkok, thailand's prime minister says she is going to dissolve parliament to ease the protest. this as protesters have been taking to the street and making their way to her office. she is trying to ease these protests by dissolving parliament. that is what is happening at the moment. let's get back to you and talk about china. a quarter of an hour ago we had inflation figures. nothing to be concerned about on that front. if you take these figures on face value. >> the general inflation pressure is not really an issue
at the moment. it is more of a price bubble. first, thing is really that she reforms and secondly growth. cyclicalation suggests monetary policy is going to be the case in the near term. >> let's just talk about what they are doing to modernize the financial system. interest rate liberalization is the key. what difference will that make? >> in the long run, it is going to improve the growth and efficiency or productivity of the economy. if you allow the market to capital, the price of it will lead to more efficient allocation of the capital. it may not beerm,
all good news. it could lead to some financial risk, especially for companies that are not so efficient. for example some state-owned enterprises or local governments. right now -- >> they are so vast they can actually borrow quite differently. >> that is the issue. they are not so efficient but because they have some government backing, they can enjoy better access to credit. it shouldn't be the case. surprised by the certificates of deposit? new has just authorized rules as to how that works. how does it help the financial system? >> it is a well anticipated step. the boc has communicated really -- this is one step.
it basically allows the banks to some of its deposit to be priced on the market. it is quite a good move because a stable the bank source of funding and also provide a safer security for investment products to go to individual investors. if managed properly, it can actually they replace some of the shadow banking activities. tell whatery early to is going to be happening. i want to move it along and talk to you about how we have this strong fundamentals for the chinese economy, but why is it that we do not get an equity market? >> i think there are several issues. after the very strong credit growth in the past few years, it seems to be a more and more widely shared view that there is
certainly credit bubble in china. >> housing particularly. >> housing and also other areas of financial systems. it could lead to some symptomatic risk going forward. that is part of the concern. in terms of institutions of the , to make it itself an area that investors can get long-term return, not just short-term gain. mechanism of the ipo is a good thing. they need to also work on exit strategies. there are so many things to do. >> great talking to you. let's just get you back. breaking news from thailand. prime minister yingluck shinawatra announced that she will be dissolving parliament. she was doing this as we get these protesters who were marching to our office. she is trying to end these
protests or ease these protests and the dissolution of parliament coming after opposition mps resigned en masse. this is what we have at the moment. more details on this developing torrey as "on the move" continues. we are talking travel on a budget with the ceo of scooter airlines. the state of the market in asia right after this. ♪
" comingis "on the move to you live from hong kong. we are going to have a look at some of the stories on our radar. intoring is due to begin the asiana airlines crash at san francisco in july. read people died when the boeing 777 hit the seawall as a came into land. the ntsb will look at pilot performance in automated
aircraft along with emergency response protocol and kevin safety. in hong kong's biggest debut in a year, china cinda raising about $2.5 billion in its ipo. the asset management company was set up in 1999 to deal with bad debt from chinese banks. we are watching out for the reserve bank of new zealand's rates on thursday as developed countries around the world maintain rates of record lows. new zealand is expected to be one of the first g 20 nations to raise the cost of borrowing. indonesia also making a decision on rates this week as well. on friday, afghan leaders gather in tokyo for a three-day summit with the japanese prime minister shinzo abe. a territorial dispute might be on the agenda. a joint statement will be issued to say any abuse of aviation poses a significant threat.
ever-increasing competition. singapore analysts -- the ceo says demand for affordable air travel in this part of the world can only increase. >> the trade in asia is very encouraging. , a have got demographics large expanding population. growth in the region. you have got socioeconomics, people starting to value more of their leisure time. all of this feeds into more demand for air travel. there isn't a viable land transport. i think it is the reason that people are very excited about the growth of low-cost carriers. are a fiveal markets to nine hour radius from singapore. that includes australia, china, korea, japan and india. there is plenty of opportunity in china. ,he cities that we fly to
direct service to singapore. it is a gold mine. >> when will you expand? are we looking at china? >> we already have four cities in china. we will certainly add more. in japan we have one. we will likely add more. australia, india. is there risk? is their concern? issues could pop up. >> i agree wholeheartedly. we are regulated by the same people. singapore doesn't 1 -- have one rule for other carriers. company.e same absolutely, there are issues. there is no reason for thinking
that low-cost carriers are -- scoot expectations on higher than others given that it is a unit of singapore airlines which is associated with quality and quick service? >> i think the expectations regarding safety and liability and punctuation are there and absolutely right to be there. secret thatr made a we are a low-cost carrier. we provide very cheap when a to -- it is a very customizable product. in the beginning, perhaps people were unsure about how it would relate. over time, we have educated the market. >> let's bring in the latest development from thailand as
prime minister yingluck shinawatra saying she will dissolve parliament. we are also heading to mumbai to gauge market reaction to state elections. ♪
>> hello, everybody. this is "on the move." prime minister changes tactics in thailand. given way toop has a rally across asia for stocks led by japan. rate expectations, what will sri lanka do? woman's from now, we hear from the central bank governor. let's get it straight to john and have a look at what is happening with this rally in asia and what is behind it.
>> we have good figures out of the u.s. on friday. 200-3000 jobs added. that is encouraging. we have china figures out, exports far better than forecast. japan's gdp, not encouraging unfortunately. china, the u.s., that is the foundation for asia. australia, a bit of the kleins. -- declines. see -- taiwann up. nikkei driven by the lower yen. we have hang seng up by 0.5%. shanghai also seeing gains. we have malaysia -- let's look at hong kong. look at the different areas.
we have american eagle outfitters lowering its forecast. thought theye would see declines, but they are not. area up byr goods 0.6%. personal goods, you can see from this, two stocks are rising. even though american outfitters have downgraded their forecast, li and fung seeing gains at the moment. that is one of the areas seeing performance. the nikkei in japan, also green. that is down to largely the yen. look at that. , telecom aboute 2.5%. services up by 3.2%.
you can see the computer -- tech equipment is rising 1.6%. the reason for that is this yen weakness. at that. it really has weakened significantly. it was 100 a few days ago. now it is 103. there could be issues about yen depreciation. the likes of china, south korea won't be happy with that. >> breaking news out of sri lanka. the central bank keeping interest rates on hold at 6.5%. we will be talking to the central bank governor and a couple of hours. the thai prime minister is to dissolve parliament. this as antigovernment protesters returned to the
streets. from locke -- prime minister in luck -- yingluck shinawatra saying she wants to ease tensions. protesters want to replace the government with an unelected opulent counsel though they are -- popular counsel though they are very vague on the details. tell us what the mood is like. >> hello? >> tell us what is going on and what the mood is like. well, clearly we are having some issues there trying to get a cold of zeb. wto celebrating a landmark deal that could add $1 trillion to the global economy. talks saw india and the u.s. government on food subsidies and --atin american bloc
president obama praising the agreement. isn't the first we have seen in the 18 year history of the wto. it will do more to salvage talks then to solve food shortages and help global commerce. to basically out get an agreement among all of us since 2001 or even earlier in 1995 the we have not been able to get an agreement. that is the first part of the significance. the second is that the package, even though it is small, it is ambitious. on thecally delivers lec's andhe developing economies. the agreement that was reached will set good traction for moving along on the development agenda. this is not so bad.
>> we are awaiting final official results from india's state elections for the opposition being seen as a big winner. defeating congress in delhi. polls pointed to a national vote which must be held up by may. it is being reported that an additional 5 wall st firms are under investigation for hiring practices in china. u.s. regulators have widened their inquiry examining whether jpmorgan broke anti-bribery laws by hiring the children of well- connected politicians and clients. that was amid scrutiny of its hiring practices. the u.s. bought more. europeans did as well and that bought a surge -- set off a surge in china's equities. for us.wn the numbers >> the biggest since january 2009 humming in at $33.8 million.
that was the trade surplus figure. billion.nt -- 38 $33.8 china has increased their imports of iron ore to a record. all of this as traders are replenishing their existing stockpile. let me tell you what the analysts have been telling us. export figures show that global is picking up. paint a softer demand picture. what we can see going on from here on out is perhaps the chinese government using this to pave the way to really make a push to rely less on their exports to fuel this trade surplus and focus more on internal domestic demand. >> talk about inflation. >> we had figures come out a few minutes ago. thead cpi rising 3% in month of november falling from
the previous month. if you take a look at ppi, that was also a little bit less than expected at 1.4%. month,ling for the 21st that is the longest period optic lines since the 1997-1999 time period. pretty much in line with the government-sponsored target. >> angst very much indeed. sri lanka's central bank governor is on the other end of the line. take you for joining us. 6.5%, kept it on hold. that is for the imf has been urging, saying that you should pause before you do any further easing. well i think our decision was mainly based on the fundamentals that we have been able to achieve so far. inflation has been moderating. s inflation was behaving itself quite well.
had dropped considerably and we are pleased about that. at the same time, we believe that as of now, the market also has to adjust to the previous rate cuts that we have made. we are awaiting the integrity of that and just meant to take place. we are satisfied with the way it has been going. at the same time, we would be awaiting the figures for december as well as the other crew fundamental figures to decide whether we should make any further moves. that will be looked at carefully. growth. about i'm going to go back to the imf which is slightly more pessimistic than you when it comes to forecasting how quickly the economy is going to expand. what makes you more optimistic than them? >> i think the figures that we have so far suggest that our figures are more in line with the actual numbers. we are ready happy with the
figures that we have been able to put out. we think that imf figures can be somewhat as a mystic. growth that we have seen in the third quarter has been very strong. that is continuing in the last quarter as well. the fact that we have made some changes to our policy rates in the last quarter also has given a bit of a cap to the economy which has probably not been picked up by the imf. all in all, we are seeing that change. we have also seen the change clearly in october figures which are the highest that we have ever recorded. that is another interesting find. if you can maintain export levels at the level we have seen in october and go on for the next few months, that would be a big -- for our overall growth.
>> great talking to you. we have got this breaking news from the bank governor. breaking story out of thailand -- yingluck shinawatra calling early elections. antigovernment protesters have returned to the streets. they are headed to government house. she has been addressing the nation saying she wants to ease tension. the opposition resigned en masse decrying the illegitimacy of the government. there are significant -- let's get the latest from zeb eckert in bangkok. >> it certainly is a mood of uncertainty. the fact that yingluck has dissolved parliament doesn't necessarily satisfy the demands of these protesters. we are talking about thousands
of protesters who have joined nine separate marches on their way to government house. yingluck appears to have made this decision to dissolve parliament to try to head off these protests. leader call this a do or die moment. it is unclear whether this will satisfy their demand. as you pointed out, they have called for an unelected council. that would essentially not be part of the democratic system. yingluck has said this simply is not possible. it very closely. she spoke on national television 30 minutes ago. rish, let's not forget it comes from -- after lawmakers from the opposition yesterday quit the government, quick parliament to take to the streets to join in these protests against her. it is a situation that continues in terms of severity. you do see those images of
protesters, they are continuing on this push the government house. >> no doubt we will have more from you over the course of the morning as this continues in thailand. shinawatra dissolving parliament for early elections. the wto's first ever global deal. we have the man who chaired the negotiations. this is "on the move." ♪
>> the wto celebrating its first major deal in its history after some hard bargaining in bali finally brought a compromise. angie lau spoke to the indonesian trade minister. >> the ministers that came to bali understood that if we were to walk out with nothing, then i
think you can pretty much say goodbye to the multilateral trading system. as much as we have seen dependencies of many economies around the world to the bilateral, regional or even -- it is important to keep faith in the multilateral trading system. that is i think the very reason why certain countries were willing to show flexibility. we told everybody that if it were up to everyone's national interests, without showing any kind of flexibility, we would not be able to reach an agreement in bali. nobody was coming to bali expecting to get 100% of what they wanted. that was a good start for the week. even though it was ready dramatic at some points. >> what do you mean dramatic? what was one of the most dramatic moments that you overcame? saw thenk everybody
andgreement between india other developing economies with respect to developed economies on the agriculture package. this was the so-called g 33 proposal where the developing economies spearheaded by india insisted on basically linking the interim solution for the agriculture package to a permanent solution. this was something that was very difficult for the developed economies to accept. we came to a landing and that was one area of other was when the cubans along with three other countries, nicaragua, bolivia and venezuela, basically were suggesting that some change be made in a very last-minute. this was in the wee hours of saturday, way past the deadline
of the meeting. we managed to pull through. on12:30, shortly after noon saturday, we were able to get all 160 countries to agree. i think a lot of this should go to roberto, the director general of the wto who basically showed the patients, the first appearance -- the perseverance to put everybody together. placeas been a very good for lots of agreements to take place. the is probably some of factors. these are some of the factor that contributed to success. >> talk about what this means in terms of precedent for those very heightened talks on agricultural subsidies for the next stage in terms of multinational, multilateral agreements. this is one of the most sensitive issues. does this latest agreement set a precedent for further talks
there? >> it does. ofhink if you hear a tone all the developing economies, there is a not a reservation with respect to subsidization that has been done by the developed economies. this is part of the horizontal imbalance that needs to be rebalanced going forward. the package that was approved basically allows developing donomies to basically subsidization for a number of their staples beyond the limits that were set back in 1986. next, kangaroo could get it bounce back. we're looking at a potential lifeline for the carrier. on the move returns. ♪
>> in a few moments we are going to be live in sydney for the latest news coming out of qantas. let's get some of the day's top stories. >> here are the top company headlines. the virtual currency bitcoin lost 1/5 of its value after china's largest search engine stopped taking the virtual
money. it follows a move by the central bank to forbid banks from processing or ensuring the coin transactions. the pboc said bitcoin is not a currency with real meaning and can't enjoy the same legal status. the company that tied up asia's biggest ipo of the year is putting its buying spree on hold. suntory beverage will take a break from m&a for 12 months. it wants to boost its current businesses to catch up with rivals. willry says its next focus be on vietnam and indonesia. is plunging the most in 12 years. australia's second-biggest insurer forecast an unexpected loss due to write-downs had its operations in north america. the company now sees a loss of $250 million. analysts had forecast a profit of over $1 billion. the guidance reflects to be's continued issues in north america where premiums fell 16%
in the first half. those are the company news. >> a group of investors is said to be considering a bid for the qantas fleet, something that would offer the struggling carrier a cash lifeline. let's get over to david in sydney. some would say it is delaying think more than anything else. that may well be the case. arrangementsf aren't anything new in the aviation industry. qantas has already got just under 3 billion out of its 11 billion in planes and engines already tied up in the sort of arrangements. it is something that they can tap to to get a little bit more short-term cash. an airline of qantas's size needs about one billion of capital spending each year just to keep its operations going.
they forecast they would spend about 1.9 billion in capital spending this year. it is now bound -- down to 1.2 billion. they are saying over the course of the year, capital spending is going to run ahead of the amount of money they are going to get. that is obviously a problem. potential way of putting that gap. they have not received a formal proposal from this group. we have lots of other levers they are looking at. remains,estion still we knew that qantas was having problems. suddenly it was this avalanche of news. what went so wrong so quickly? think the core thing is that qantas has been built on a particularly strong domestic business. that has been the cornerstone of everything they have done for pretty much a decade. after another airline collapsed
basically had a monopoly on australia's domestic market. that was in place until 2010 when virgin australia started to expand as a full-service carrier and try to take it on. even then, everyone expected that qantas had the upper hand in this game. airline,uch bigger they had a 65% share of the market. they are in good position to crush version in that way. the thing that has changed measures -- matters is that virgin australia shareholders include air new zealand, singapore air, they have all come up and gone and said they are prepared to buy more of virgin shares to continue this battle. from qantas's perspective, what is happening is that these international airlines which compete on international routes, they are essentially underwriting the business.
virgin strongly disagrees with that. what was once the strength of qantas, the domestic network, is now looking a lot weaker. the, the money that qantas is making from the domestic planes is going down. >> david, great talking to you. up next, talking territory and tensions with china. our exclusive interview with the japanese prime minister shinzo abe coming up after this very short break. ♪
>> a change in tactics. the thai prime minister as early elections. a four-day drop in asia has given a way to a stock rally led by tokyo. and top level talks with china. alex was interview with a japanese prime minister. what -- we a look at have got some negativity in australia. what else is is going on with your money? >> stocks are falling.
there they are. 20% down. when billion dollar profit. profit.llion dollar that explains that. , we have some markets seeing gains. the nikkei, 2%. the weak yen is driving up exporters. they gains, there they are. gains, all in transport. stocks., energy here is the china picture.
financials holding back the shanghai composite. real estate. property stocks falling. that has been the ongoing situation. you have got industrial and energy with declines. overall real estate and energy stocks are driving it down. the weak currency is at 103. japan -- they say it is a topic for them in 2014. >> indonesian trading week.
done. that deal we have got equities rallying. what is happening there? >> good morning. let's begin with a report from bali. they finally agreed to a deal that supporters say it will boost economic output. that only after negotiating session that went into overtime. it is an agreement that would make it easier and cheaper to move goods around the world by cutting red tape and improving custom procedures. they said it will help at theine traffic borders of many economies. that will help boost trade in all countries. the deal in bali also left india
and other developing nations continue to subsidize the crops to bolster security without having to worry about challenges. wasbali package itself reached after a series of -- .et's take a look at the arcade indonesian shares are seeing a rebound after a decline. better than expected economic data from the u.s. buying.nspired concerns are that banks will hold a monthly meeting and limited gains. high inflation has forced the bank of the tanisha -- indonesia to -- the has been some speculation that the bank indonesia at its december 12 meeting might hike
its interest rate and efforts to help. some stocks were leading the rally this morning. take a look. more than 1%. another of 2%. take a look at interest rates. it rose 2.7%. the international up more than about one percent on bargain buying. that is all we have from jakarta. back to you in hong kong. >> thank you. to india, aian sweeping gain in the street. .aking control of the capital we are still waiting the full results of the bjp.
the bills also give a sharp point to that national election victor. let's get reaction from all of this. joining us is a chief executive an energy producer. are you surprised by any of this? >> no, i don't think so. i think the fact that there was a song, a vote for change was -- the results have shown that. polling before the elections was very much pointing in this direction. i do not think it is a surprise to anyone as such. >> what does this tell us about what happens -- before may anyway? >> there is still a few months left for the general elections. thatnk what it means is
there is a very strong the vote for change. there is a strong desire for change. the congress party has been in government for the last 10 years. clearly they are not doing well here it out of the four states that went for elections, and two of them are ruled by the congress party. the congress ended up losing both of those decisively. the parliament party ruled one of them. actually, two of them, but it was weakening quite decisively. and moderate states where congress lost, new delhi is that capital. partyis an extreme touting change. that party stood on a plank of a very strong anti-corruption sort of the platform. they ended up doing extremely well. if you were to draw out an
inference on that, it would be that they want change very strongly for whatever the credible alternative is, they will vote for it. that closet -- picture a little bit for the elections. it will happen for five months from now. winning a sufficient number of seats to form that government, pe goalie if that opposition votes are split -- but equally, it if the --osition votes are split up i doubt that latter scenario. having said that, i think it will probably be a government that is in some shape led by the parliament party that was most likely from the government here as i said, elections are still for five months away. it is still a long time. who knows what will happen? bjp isthe leader of the
being business friendly. there is also criticism. was writing on one side. the economy did fantastically eerie. that is a big issue. necessarily subscribe to that anecdotal evidence. there were riots. i think since then, it has been free of riots. it has been a fairly safe place to do business in. fairly business savvy area.
there is a general feeling among people that perhaps it might provide the same type of leadership and strong government as the center. that is why his chances in the parliament are looking brighter than they might have had the country been doing well economically. >> a few so much for joining us. he was talking about the election landscape. over in india. turning to japan where the prime minister says territorial tensions continue their. -- there. he says it is time to reset relations between the two countries. we need each other. we should understand that. we should not let one issue control the entire relationship.
both of us have an understanding mutualuld lead to a relationship. because they are risk -- issues -- iowa's keep my doors open for dialogue and hope china would adopt the same stance. that is my hope. alex len international business publication has -- ated u.s. superman least one international business publication has depicted you as superman. what is the next up in economics? this fashionaced as the session that we implement growth strategy. we have industrial repetitiveness that addresses a regulatory format and dramatic improvements of profitability and restructuring, as well as promotions to start up businesses. regarding the effective corporate tax rates, we have withed to move forward reviews and studies as to how corporate tax can allow
companies to stay competitive in the global market. at the beginning of next year, the cabinet will approve the latest policies on the growth strategy. we will announce the timing of the execution and minister assigned to support these policies. >> right. up, we take- coming a look at thailand. the prime ministers calling for early elections and to resolving solomon. details coming up next. ♪
>> heading back to our top .tories these are live images coming to us from outside the government house in bangkok.
again.o hear from you this is a change of tactics by yingluck. elections have not been won by the democrats since 1982. go ahead. well, obviously we're having some difficulty there. we will try to get to him for you. let's have a bit more of these images that are coming through from bangkok. there are protests from the opposition and anti-government protesters there. is a dissolution of the element. -- parliament.
resigned. we could quickly look at what is going on i we will try to reestablish links with our correspondent. down.anghai composite trade is the highest we have seen since january 2000 nine. it has been four years. the hang seng moving to the upside. market has been propelling the others in the asian pacific. korea moving higher. the nikkei also getting a boost.
that is what we have. let's tell you about what else we have got coming up in terms of some of the headlines from around the world. having a look at south korea, expanding its air defense in the south east china sea. korea's move has covered two islands. the u.s. vice president joe was in beijing last week. north korea confirmed the fall of kim jong-un's uncle. weekend, -- shots were brushes were used to
remove his uncle. lastly what we have got coming up next. thick fog choking northeast china at the moment. we have got forecasts of visibility less than 20%. for the an orange alert severe weather. this is the second highest fog alert warning. will hold a memorial service for nelson mandela a honest bird tomorrow -- in johannesburg tomorrow. charlie rose has a special program remembering nelson mandela. guests tell him their
memories. >> they really talked about his politics. they talked about his character as a person and how dominant a physical presence he was. people forget that he loved sports and boxing. he used to practice boxing in his jail cell. he loved to follow the races. he followed global sports. he wanted the guards to update him on various sporting events. that on bloomberg p.m. hong p.m. and 11 kong and singapore time. more headlines after this. ♪
>> breaking news story. the dissolution of parliament by yingluck. joining us is paul chambers. thank you for hanging around with us. what do you make of this move by yingluck? democrats have not lost an election since 1992. she is bound to be a shoe in for this one. iswell, i think yingluck trying to take the moral high solution --lling a even though the democrats have to won an election, she has at least compromise with them. , it is unlikely
that she will become prime minister in the next election. is becausefor that under the cut solution, all of the state of parliament have to be filled -- all of the seats of parliament have to be filled. the democrats refuse to participate. , that partytrict was unpopular. they can deprive her of the ability to win in their district. her party could not be popular enough to get enough votes in the district. i hope that is understandable. .> yes we look at these events, it is an irony that the democrats want institute and anti-democratic
procedures -- want to institute seizures.mocratic or how did the people in the streets take that? both parties are trying to obtain the moral high ground. the democrats are saying yingluck's party has been very corrupt. there has been an attempt to whitewash all of the crimes of the corruptions. they are trying to take the moral high ground. on the other hand, yingluck is also trying to take the moral high ground. will not firee into the crowds of people. i am willing to negotiate. if she will only negotiate from the majority of the people. her party is popular with the majority of the rural people. in the end, when it comes down
to the constitution, as a democratizing country, the democrats have used this ploy before and can use it again. they can say, look, we just will participate in the election. basically run democracy into the ground. to the constitution, there is no way for her to win, her party to win in the majority democrat districts, and so there would be no prime ministers selected in the next election. party tod force her compromise in some way with the democrats. i think that is kind of an use, butctic to they're very machiavellian. they will do whatever they can
to get the most power they can. --very briefly, 40 seconds it is about one family. that is really who they want to oust. >> you are exactly right. and the about yingluck family not having the reins of power. >> right. that has beenis going back eight years revolving around one party. one person is trying to return to power. his sister is a nice prime minister. , this is asaid and heof his supporters himself trying to return him to power.
i think this will continue. >> that was paul chambers joining us on this story in thailand. ♪
>> it is the middle of the asia trading day. this is "asia edge." ♪ a change in tactics in thailand. the prime minister dissolves -- life's greatest second next. on why it is better this time around. protesters return to the
government house. we will check that atmosphere on the streets of bangkok. and it has taken 18 years, but deal.o delivers a make strong gains in india. we will be live in mumbai. all of that and more on this edition of "asia edge." all, you have got the philippines stock down. the feeling in asia comes down to jobs in the u.s. fell.employment rate that is encouraging. you are